2. Review the incomplete horizontal analysis shown in the image. Assuming that for 2021, the debt-to-equity ratio of the firm is 1:2, and 40% of the liabilities is current, what is the current ratio? 2020 in pesos 2021 in percent P ??? Current Assets 110% Noncurrent Assets 2,500,000 105% Total Assets P 3,000,000 ???%

Financial Accounting
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Chapter14: Long-term Liabilities: Bonds And Notes
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Problem 1PEB: Brower Co. is considering the following alternative financing plans: Income tax is estimated at 40%...
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2. Review the incomplete horizontal analysis shown in
the image. Assuming that for 2021, the debt-to-equity
ratio of the firm is 1:2, and 40% of the liabilities is
current, what is the current ratio?
2020 in pesos 2021 in percent
P ???
2,500,000
P 3,000,000
Current Assets
110%
Noncurrent Assets
105%
Total Assets
???%
Transcribed Image Text:2. Review the incomplete horizontal analysis shown in the image. Assuming that for 2021, the debt-to-equity ratio of the firm is 1:2, and 40% of the liabilities is current, what is the current ratio? 2020 in pesos 2021 in percent P ??? 2,500,000 P 3,000,000 Current Assets 110% Noncurrent Assets 105% Total Assets ???%
4. Analyze the given vertical analysis and compute
for the quick ratio. *
In Pesos In Percent
500,000
Cash
Short-term Investments
2
Receivables
600,000
Inventories
8
Prepaid and Other Current Assets
100,000
Total Current Assets
Total Noncurrent Assets
6,000,000
75
Total Assets
Current Liabilities
?
Noncurrent Liabilities
Equity
Total Liabilities and Equity
40
3,200,000
5. Compute the quantity variance based on the
data on the image.
2018
Sale Price
Cost per Unit
2019
P 520 P 500
330
360
Units Sold
13,000 13,500
6. Assuming that the sales price increased by 5%, what is
the cost price variance? *
2021
P 6,235,500| P 6,000,000
Cost of Sales 5,049,000 5,000,000
2020
Sales
7. How much is the sales price-
volume variance? *
P 861,250
900,000
Gross Profit Last Year
Gross Profit This Year
Change in units sold last year
Units Sold
650
50
P 100
Change in sales price
Change in cost price
75
Excerpt from the four-way analysis:
Sales Quantity Variance - Unfavorable P 245,000
Cost Price Variance - Favorable
45,000
Cost Quantity Variance - Favorable
178,750
Transcribed Image Text:4. Analyze the given vertical analysis and compute for the quick ratio. * In Pesos In Percent 500,000 Cash Short-term Investments 2 Receivables 600,000 Inventories 8 Prepaid and Other Current Assets 100,000 Total Current Assets Total Noncurrent Assets 6,000,000 75 Total Assets Current Liabilities ? Noncurrent Liabilities Equity Total Liabilities and Equity 40 3,200,000 5. Compute the quantity variance based on the data on the image. 2018 Sale Price Cost per Unit 2019 P 520 P 500 330 360 Units Sold 13,000 13,500 6. Assuming that the sales price increased by 5%, what is the cost price variance? * 2021 P 6,235,500| P 6,000,000 Cost of Sales 5,049,000 5,000,000 2020 Sales 7. How much is the sales price- volume variance? * P 861,250 900,000 Gross Profit Last Year Gross Profit This Year Change in units sold last year Units Sold 650 50 P 100 Change in sales price Change in cost price 75 Excerpt from the four-way analysis: Sales Quantity Variance - Unfavorable P 245,000 Cost Price Variance - Favorable 45,000 Cost Quantity Variance - Favorable 178,750
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